Tag: Economic Development

A Michigan-based company slated to produce lithium-ion polymer batteries for electric vehicles has instead kept production overseas, has failed to meet job targets outlined in a $150 million grant from the federal government, and has been reimbursed by the government for $842,000 in wasted work time, according to a U.S. Department of Energy Special Report released Wednesday.

The DOE says Holland, Mich.-based LG Chem Michigan misused part of a $150 million in American Recovery and Reinvestment Act funds and has decided not to shift production from its plant in South Korea to Michigan. It painted a stark picture of wasted U.S. federal dollars.

"Until the shift in production takes place or some alternative use for the plant is developed, U.S. taxpayers will receive little direct benefit from a plant for which they provided up to half of the funding," the report said.

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It never seems to end well.

LG Chem which promised 300 jobs, received a $150,000,000.00 Fed grant, $7,000,000. more in fed paid training and $700k in health coverage, has bored employees.  The employees, which might have been present at the federally funded $500,000.00 groundbreaking with special guest Barack Obama might need to hang around a little longer so that Michigan can cough up its promise of $125,000,000.00 in credits as well.

A little report worth watching.

A year from now this plant will be empty.

As written by Daniel Horowitz from the Madison Project, "The most important amendment that has been proposed so far is Mike Pompeo's amendment #37 to abolish the Economic Development Administration (EDA). The EDA is a failed Great Society program that serves as a stimulus/pork slush fund for special interest communities under the guise of assistance to economically distressed areas of the country. It's nothing more than a fund for corporate welfare and a way of picking winners and losers in the market. It has been as successful in creating jobs as Obama's stimulus." This amendment would have saved $3 billion in wasteful "stimulus" spending over ten years.

Unfortunately, the amendment failed.

All Democrats and 104 Republicans voted against the amendment. Included in that number was Congressman Fred Upton, who has lately been telling his constituents back home that he is opposed to stimulus spending and bloated budgets. "Voting against this amendment is hypocrisy on his part. I can only assume he thought nobody would find out," stated Hoogendyk.

"The Pompeo amendment is just one example of how Congress and Fred Upton can make meaningful cuts, one at a time, to reduce the size of the federal budget which is in serious need of reduction," he continued. Upton voted wrong on several other amendments that would have saved a total of over $8 billion in the coming year.

"It's in the amendment process that government can be reduced," said Hoogendyk. "Now is the time for courage and action."

Yesterday was Michigan's birthday.

Our state has undergone a great deal of change over the last 175 years, and today can serve well as a history lesson for the country and itself.   Especially given the recent discussion with regard to government owned bridges, light rail, and other stimulus & economic development efforts funded with tax dollars, we should certainly note that some things never change.